Report: ‘Shadow Goverment’ Of Private Contractors Explodes Under Bush

A new report by the Committee on Oversight and Government Reform concludes that, under the Bush administration, the “shadow government of private companies working under federal contract has exploded in size. Between 2000 and 2005, procurement spending increased by over $175 billion dollars, making federal contracts the fastest growing component of federal discretionary spending.”

But while private contractors — such as Halliburton and AshBritt — have been reaping huge profits, “billions of dollars of taxpayer money have been squandered.” Some highlights from the report:

– Growth in federal contracting exceeds inflation rate. In 2000, the value of federal contracts totaled $203 billion. By 2005, the value was $377.5 billion, an 86 percent increase. The new report notes that this “growth in contracting was over five times faster than the overall inflation rate and almost twice as fast as the growth in other discretionary federal spending over this period.” A record level of “nearly 40 cents of every discretionary federal dollar now goes to private contractors.”

In the report’s review of 500 contracts, 118 contracts worth $745.5 billion “experienced significant overcharges, wasteful spending, or mismanagement over the last five years.” A recent report by American Progress Senior Fellow Scott Lilly has more details about the Bush administration’s procurement process problem and what Congress can do to clean up the mess.